There are 100 balls in a raffle, 80 blue, 15 red, and 5 green. If a blue ball is drawn, I win $1, a red ball, I lose $10, and a green, I win $8

Question

Expected Value

Answer 1

The expected value is -$30.  (80 x $1) + (15 x -$10) + (5 x $8) = $80 +(-$150)+$40 = $120 - $150 = -$30.